D.G. Khan Cement Company Limited (DGKC) has seen its half-year (1HFY23) profit after tax (PAT) slump by 57 percent to Rs. 932 million compared to profit after tax of Rs. 2.17 billion reported in the same period of the previous fiscal year.
The cement manufacturer announced its financial results for the half year ended December 31, 2022, on Wednesday. The company reported earnings per share (EPS) of Rs. 2.13 in 1HFY23 compared to EPS of 4.97 reported in 1HFY22.
The company posted PAT of Rs. 543 million in 2QFY23, down 57 percent compared to PAT of Rs. 1.27 billion reported in the same period of the previous fiscal year.
Sales during 2QFY23 clocked in at Rs. 16.2 billion, down 1 percent compared to the same period of the previous year due to a massive 40 percent decline in dispatches, which offset the impact of a nearly 50 percent jump in retention prices.
In 1HFY23 revenue jumped by 8 percent compared to the previous year as robust growth in cement prices countered the impact of the 34 percent dip in cement off-take, according to a report by Arif Habib Ltd.
Gross margins remained well below expectations during 2QFY23 at 13.5 percent compared to 16.9 percent in the same period of the previous fiscal year on the back of volumetric decline, increase in coal prices, high power tariff and rupee depreciation all of which offset the impact of an increase in retention prices.
The margins in 1HFY23 settled at 14.3 percent compared to 17.7 percent in the same period of the previous fiscal year.
The other income during 2QFY23 remained stagnant on a year-on-year (YoY) basis and stood at Rs. 731 million. During 1HFY23 the other income posted a slight growth of 8 percent and stood at Rs. 1.39 billion.
The finance cost grew by 101 percent to Rs. 1.6 billion in 2QFY23 while the increase in finance cost was 108 percent in 1HFY23 due to higher interest rates.
The company booked effective taxation at 33 percent in 2QFY23 compared to 25 percent reported in the same period of the previous year.
